Can we make changes to the mortgage application, such as length of term, repayment frequency, etc., once the application has been submitted?

Yes. Your ideal mortgage formula has probably already been created, but if you want to consider a change let's review the possible benefits and implications.


What is an IAD or Interest Adjustment Date?

If your transaction is due to close in the middle of the month, but your regular mortgage payments are set for the start of the month, your first mortgage payment could be delayed for several weeks. To cover this, a date is set as the IAD and an amount is collected on closing to cover this Interest Adjustment Date period.


How much of a downpayment will I need?

The minimum down payment required to purchase a home in Canada depends on the property's purchase price. The down payment is calculated as a percentage of the purchase price. Here are the minimum down payment requirements:

For homes with a purchase price of less than $500,000: The minimum down payment is 5% of the purchase price.

For homes with a purchase price between $500,000 and $999,999: The minimum down payment is 5% of the first $500,000, plus 10% of the portion between $500,000 and $999,999.

For homes with a purchase price of $1 million or more: The minimum down payment is 20% of the purchase price.

It's important to note that these requirements may vary based on specific lending institution policies and other factors. It's always a good idea to consult with a mortgage broker or lender to get the most accurate and up-to-date information for your particular situation.


What is the difference between High Ratio Mortgage Insurance and Mortgage Life Insurance?

High Ratio Mortgage Insurance protects the lender against payment default by the home buyer. It is required by most lenders if the home buyer has less than 20% downpayment. An insurance premium will apply. Mortgage Life Insurance protects your dependents and loved ones in the event of your death.